UK election results dragged the Cable towards deep waters and
the GBP/USD marked low at 1.2632. The pair bounced to the upside but however
closed at 1.2742.
Uncertainty is affecting widely on the pair, as Theresa May failed to ensure
the needed support to come to a deal with the European union and has lost seats
at the Common House and is lack of majority.
Technically speaking, the short-term is likely to remain bearish. On the four-hour
time frame the price is moving well below its moving averages.
RSI and stochastic had corrected from the extreme oversold readings and are
more likely to support a new leg towards the downside. Both indicators had lost
directional strength but yet remain well below their mid-lines.
The political uncertainty has not disappeared and the Cable will be under
pressure in the near future. And besides UK, the pair will be affected by next
week’s FOMC decision.
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